Legislation signed this week prevents federal agencies from imposing steep new caps on university negotiated indirect‑cost rates for the coming fiscal year, sidestepping a potential multi‑billion‑dollar shock to research university budgets. Universities had warned that a flat 15% cap proposed by a federal agency would have slashed reimbursements for overhead such as lab infrastructure and electricity, jeopardizing sponsored research. While the temporary block preserves current negotiated rates, research leaders remain alert to future policy pressure and are planning advocacy and alternate funding strategies should caps be revived.
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